Wynnstay profits slip in 2023 in tough trading environment

A more difficult trading background pushed down profits at agricultural supplier Wynnstay in 2023, despite reasonable growth in total revenue.

Wynnstay made a pre-tax profit of £8.7m in the year to 31 October 2023, down from £22.4m during the previous financial year.

Revenue increased by 3% on the year to £735.9m, with the acquisitions of Humphrey Feeds and Tamar Milling helping to drive this.

See also: Wynnstay acquires Humphrey Feeds and Pullets

Feed volumes sold were down 5.3% on year-earlier levels, with a reduced demand from the dairy sector due to lower milk prices.

Lower margins also remained in the poultry sector in the wake of avian influenza outbreaks, which also depleted bird numbers.

Looking at market share, Wynnstay accounted for 9% of the free-range poultry feed market, 9% of dairy blends, 5% of cattle feed and 5% of sheep feed sales.

Traded volumes were up 30% for its grain marketing operation, Grain Link, which increased its market share in the east of England.

Fertiliser sales increased in volume by 2% year on year as sales grew in response to lower fertiliser prices.

Meanwhile, seed sales were down on the year, primarily due to poor planting conditions in the autumn.

The company, which employs almost 1,000 people and has 53 depots in the UK and 12 manufacturing sites, said in its financial results that the group is well positioned to continue with its strategic growth plans and to consider further suitable acquisition opportunities.